Do we simulate Dreams ?

While dreaming we do many thing which seem to be real. much like virtual reality , but one thing very surprise to me and it should be to you also, is simulation is done by brain. We do not see recorded dreams , we dreams some thing new and react accordingly and whole dynamics of dream is seem to be actual. Its always a question that how to dream but more important , how much we can dream. 2 -3 time i got a dream inside dream even. But many times i use to know this is dream and try to wake up. I apply a lot of force to wake up. This happen with me a lot of time. once in dreaming , i was flying with rope. It is possible to fly with rope with dream because while we are dream we make a new world with new rules of dynamics and physics. But most important point ,do our brain is really such a smart fellow that we can even simulate new world. technically this is a job of many many super computer

This gives some important aspect

** Are we still in dream -- while dreaming it is difficult to know or get a thought that we are dreaming.
** we get a new world and we feels a new dynamics or world in dreams. But How it is possible ?? In term of computer , this type of simulation needs a very high processing power. So because we simulate a new environment , proves our brain really has very strong computation power also.